Rasna bets on origin

Fruit Fun will now have variants like Nagpur Orange, Alphonso Mango, Shikanji Nimbupani and Chowpatty Kalakhatta

Rising mercury levels are not the only indicator of the onset of summer. Increasing decibel levels of brands ranging from air conditioners to beverages which see a bulk of their sales this season are just as potent an indicator. And fruit powder drink brand Rasna is all set to contribute its own share to this noise this season.

With good measure too, since this time it isn't just another advertising blitzkrieg. The brand is introducing its 'origin' driven variants of Its Rasna Fruit Fun, the powder drink sub-brand, mostly targeted at the bottom of the pyramid with a starting price point of Rs 1 for two glasses. The company carried out research among its target groups to ascertain new concepts that they could possibly introduce in 2013. Some of the concepts tested with the respondents were: fusion flavours, make your own cocktail, surprise flavour or origin-based drinks. The verdict was unequivocally in favour of origin driven drinks and the result is, flavours like Nagpur Orange, Alphonso Mango, Shikanji Nimbupani etc.

"The Indian consumer is quite addicted to Indian flavours. Sticking to his comfort palate with flavours like kesar elaichi and shahi gulab rose makes sense," says Piruz Khambatta, CMD, Rasna. Plus every consumer identifies a certain ingredient with a specific region more strongly than others, he adds. Highlighting the origin means an implied quality assurance for the consumer.

This launch will be accompanied by a 360 degree campaign, starting with television commercials for its various products like Rasna Fruit Fun, Rasna Fruit Plus, positioned on the energy giver platform and Rasna Shake Up, a shake drink. The campaign will continue to use the 'I love you Rasna' tagline, attached with the brand since almost 1987.

Much like the tagline, the company hasn't changed its basic price points of Rs 1, Rs 2 and Rs 10 in over ten years. Khambatta attributes much of the brand's success to this constancy in its pricing strategy. The nearest competitor, Kraft's powder drink brand Tang has a starting price point of Rs 5.

"That the Indian market is very sensitive to prices is not unknown. It is also the reason why carbonated drinks are not getting popular (owing to their price point for larger packs, starting at Rs 45 for a litre)," says Khambatta.

Processed food categories at large do not enjoy very high penetration rates in India. The per capita consumption of packaged beverages in India is among the lowest in the world. It is little surprise then that the powdered drink category has just a nine per cent penetration in the country (carbonated drinks fare slightly better at 15 per cent as per industry estimates).

Entry of newer players is welcome, says Khambatta as the only way to grow is to grow the market. For instance the entry of Kraft and Tang has thrown open some interesting sales avenues for Rasna indirectly. Kraft, using Cadbury's distribution reach is now selling Tang at even newspaper stands which stocked confectionary from the company. Piggybacking on Kraft's distribution strategy is helping Rasna widen its reach.

Distribution and reach continue to be a challenge as the company still depends on state transport buses for its last mile delivery to remote locations. The company grew its retail reach to 1.8 million outlets last year. In terms of revenue the company is looking at closing this financial year with a turnover of Rs 450 crore, not divulging further target details.